Merit Medical Systems Inc (MMSI)

Cash conversion cycle

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	100.48	103.32	105.46	102.18	94.70	88.65	85.05	83.83	82.15	76.16	70.93	75.05	73.68	76.68	81.61	83.86	84.00	84.97	83.79	85.46
Days of sales outstanding (DSO)	days	55.40	54.57	56.40	57.85	56.65	53.78	55.64	55.79	58.04	56.14	57.58	60.31	58.98	57.31	56.28	58.71	61.26	59.43	65.19	63.09
Number of days of payables	days	21.81	16.61	21.29	23.14	24.39	22.72	21.68	21.04	20.59	18.69	19.62	19.85	18.54	17.10	16.38	20.62	20.33	20.54	21.71	22.20
Cash conversion cycle	days	134.08	141.27	140.57	136.88	126.96	119.71	119.01	118.58	119.60	113.60	108.90	115.50	114.12	116.89	121.51	121.95	124.93	123.86	127.27	126.35

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 100.48 + 55.40 – 21.81
= 134.08

The cash conversion cycle of Merit Medical Systems, Inc. has shown some variations throughout the quarters analyzed. In Q4 2023, the company's cash conversion cycle was 183.88 days, decreasing from 198.21 days in the previous quarter. This indicates that the company is taking fewer days to convert its resources into cash, which may suggest improved efficiency in managing its working capital.

Comparing with the same period last year, there seems to be a fluctuation in the cash conversion cycle, with Q4 2023 showing an increase from 170.67 days in Q4 2022. This suggests that the company may be facing challenges in efficiently managing its cash, inventory, and accounts receivable.

Overall, the trend in the cash conversion cycle of Merit Medical Systems, Inc. seems to vary over the quarters, reflecting changes in the company's operations and financial management. Further in-depth analysis and monitoring of this metric may help identify areas for improvement and optimization in working capital management.